As part of the enhancements to its Open Market HomeBuy offering (OMHB), Yorkshire has extended its interest free equity element to 32.5 per cent for the first five years.
The lender confirmed that it would replace its current 75 per cent-25 per cent offering, which was designed to further aid aspiring buyers.
The range is available at 6.79 per cent fixed for five years, or Bank of England Base Rate plus 1.49 per cent for five years. After the initial five-year period, borrowers will pay 3 per cent interest to Yorkshire. The range includes no product fee.
Andy Caton, corporate development director at Yorkshire Building Society, said: “The 32.5 per cent total equity loan is an increase on the previous scheme, thereby increasing the customers’ buying power and reducing their costs. We have been delighted with the progress of OMHB so far and are firmly committed to offering potential buyers the best deal possible.
"Despite the increase in funding rates, we have been able to offer a product at a lower rate than the previous product and with no application fee. The five-year products provide stable monthly payments in those crucial early years of home ownership.”
James Cotton, mortgage specialist at London & Country, welcomed the improvements, and said: “The ability to obtain a fixed rate should encourage buyers. The downside is that it is another government scheme, so could cause some confusion.”
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